Honda Siel Cars India sales volumes decline for November 2011 due to short supply of parts from Thailand

Relentless floods that have swamped major parts of Thailand these past few months have affected the supply of components and auto parts to Honda plants, and this in turn has severely affected November 2011 sales volumes. Productions cuts have been initiated as the supply chain is no longer in full capacity.

While Honda Siel is doing its utmost to restore production it is unlikely to go full steam right away.  The company would look forward to customers’ support during these trying times. Honda is making alternative arrangements to source components from either China or Japan to tide over these shortfalls. This parts shortage is likely to continue through December further causing havoc to sales of these models in India.  Production will be slashed by 95% in December and only about a few hundred units will be manufactured so as to keep the plant running and maintain manpower. For November 2011, HMIL recorded sales of 1,982 units. This includes 666 units of the Brio, and 382 of the Jazz. The Honda City sedan accounted for 652 units. Civic numbers stand at 161 units, the Accord at 91 units, and the CR-V at 30 units.

Sr. Vice President – Marketing & Sales, Honda Siel Cars India, Mr. Jnaneswar Sen had this to say. “As announced earlier, the Thailand floods have severely impacted our production in the month of November due to the parts shortage and this is expected to continue in December as well. We regret the inconvenience faced by our customers due to this situation and seek their understanding in the matter.  HSCI is making concerted efforts to resume full production as soon as possible.”

Production has been suspended at the Honda automobile production subsidiary in Thailand since October 4th. This has affected components supply, and production of all cars has been affected. This is especially true for the Honda Brio, Jazz and City as they are the major contributors to sales volumes for Honda in India.